Disclosure sustainability reporting and corporate governance business performance: how it impacts on market performance

Abstract

This research proves empirically that the mechanism of corporate governance and sustainability report as a predictor of financial performance and its impact on market performance. The research model is built on the basis of stakeholder theory. This research uses purposive sampling method in sampling technique. The sample used in this study are non-financial companies listed on the Indonesia Stock Exchange in 2017-2019 which publish annual reports and sustainability reports, respectively. The results of this study indicate that both the disclosure of the sustainability report and the corporate governance mechanism have a positive and significant effect on financial performance. Financial performance has a positive and significant effect on market performance. Further findings indicate that corporate governance mechanisms affect market performance through financial performance. On the other hand, the disclosure of the sustainability report has no effect on market performance through financial performance.

Komunikasi Bisnis

“…Bisnis apa pun, terlepas dari ukurannya, perlu dikelola untuk mencapai tujuan. Sejumlah riset menunjukkan bahwa bisnis yang dikelola dengan profesional memiliki lebih banyak peluang untuk mencapai kesuksesan dan bertahan untuk waktu yang lama di pasar dibandingkan dengan bisnis yang tidak terorganisir (Yolanda et al, 2022). Karenanya, setiap bisnis perlu dikelola dan dianalisis secara tepat waktu agar berbagai keputusan bisnis dapat diambil dengan tepat.…”

The Role Corporate Governance in Managing Financial Risk: A Qualitative Study on Listed Companies

“…Good corporate governance can help reduce financial risk, while poor governance can increase financial risk [5]- [9]. Corporate governance plays a pivotal role in shaping the strategic direction and operational decisions of modern businesses, influencing their overall performance and long-term sustainability [10]- [13]. In an increasingly complex and interconnected global economy, effective corporate governance practices are essential for mitigating financial risks, safeguarding the interests of shareholders, investors, employees, and other stakeholders [11], [14].…”